Thursday, September 2, 2010

This is my first foray with auto supplier Magna International (MGA), hence due to that factor plus when I bought the stock the S&P 500 was being kicked in the groin on a daily basis I started off with a modest position of 1.3% or so. The stock held up really well (versus my purchase point in the $74s) during the remaining days of the selloff, and bounced smartly the past 2 days. It is now back to the old highs so either its going to face some resistance here or break out to new highs. I will cut the position in half with a 11.5% gain in just a few days. I suppose of we celebrate 48,000 jobs created (115K via birth death) tomorrow ("better than expected yo!") with a breakout over resistance on the S&P 500 I'll scramble back to get back the stake as it breaks to new highs.

Otherwise, I can buy a dip and make position size larger next time around, now that I am more comfortable observing how it acts.

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